Talwalkars Better Value Fitness (Q3 FY14)

India Infoline News Service | Mumbai |

Talwalkars posted ~28% yoy rise in net sales on the back of gym additions which now stand at 149 (including 103 owned gyms) vs 135 at the start of fiscal

CMP Rs139, Target Rs190, Upside 36.9% 
  • Talwalkars posted ~28% yoy rise in net sales on the back of gym additions which now stand at 149 (including 103 owned gyms) vs 135 at the start of fiscal


  • Margin expanded >500bps on improved staff utilization and slower rise in admin & other expenses; PAT growth of ~20% yoy trailed EBDITA due to sharp 93% yoy jump in depreciation


  • Company added two HiFi centres in Q3 while Zumba offerings were expanded to 46 centres across 31 cities


  • We tweak our earnings forecasts for next fiscal and also introduce FY16 estimates; retain our bullish stance on the back of robust ~22% EPS cagr over FY14-16 with unchanged 9-12mth target of Rs190 

Results table (consolidated)
(Rs m)
Q3 FY14
Q3 FY13
% yoy
Revenues
330
259
27.7
Staff
(58)
(55)
4.6
Admin & other expenses
(118)
(96)
23.5
Operating profit
154
107
43.5
OPM (%)
46.6
41.5
513 bps
Depreciation
(68)
(36)
92.8
Interest
(32)
(30)
5.3
PBT
54
42
29.0
Tax
(12)
(8)
53.5
Effective tax rate (%)
22.0
18.4
360 bps
Adjusted PAT
42
34
23.5
Adj. PAT margin (%)
12.8
13.2
(44) bps
Minority int
(7)
(5)
40.6
Reported PAT
35
29
19.9
Source: Company, India Infoline Research
 
Financial summary
Y/e 31 Mar (Rs m)
FY13
FY14E
FY15E
FY16E
Revenues
1,509
1,864
2,234
2,573
yoy growth (%)
26.4
23.6
19.8
15.2
Operating profit
726
899
1,074
1,243
OPM (%)
48.1
48.2
48.1
48.3
Reported PAT
300
354
434
527
yoy growth (%)
36.2
17.7
22.6
21.4
EPS (Rs)
12.5
14.7
18.0
BSE 305.00 4.60 (1.53%)
NSE 304.95 4.15 (1.38%)

***Note: This is a NSE Chart

 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.